The Supreme Court ruled that a seafarer’s failure to disclose a prior medical procedure (stenting) during a pre-employment medical examination (PEME) does not automatically disqualify them from receiving disability benefits if the employer was already aware of the underlying illness. This decision protects seafarers by preventing employers from denying benefits based on technicalities when the core health condition was previously known. It emphasizes the importance of transparency on both sides and ensures that seafarers are not penalized for non-disclosure of procedures related to known pre-existing conditions.

Sailing Through Disclosure: When Does a Seafarer’s Medical History Affect Disability Claims?

Almario F. Leoncio, a seafarer, sought to reverse the Court of Appeals’ decision which denied his claim for permanent total disability benefits. Leoncio had a history of working for MST Marine Services (Phils.), Inc. and Thome Ship Management Pte. Ltd. Since 2001, the company was aware of his Coronary Artery Disease/Hypertensive Cardio-Vascular Disease (CAD/HCVD). However, after undergoing a stenting procedure in 2009, he did not disclose this during his pre-employment medical examination (PEME) in 2014. This omission led to the denial of his disability claims when he experienced further heart problems during a subsequent voyage. The core legal question was whether Leoncio’s non-disclosure of the stenting procedure constituted a fraudulent misrepresentation that would bar his claim for total disability benefits under the POEA-SEC.

The Supreme Court granted Leoncio’s petition, emphasizing that the non-disclosure of a medical procedure related to a pre-existing condition already known to the employer does not constitute fraudulent misrepresentation. The Court referenced Section 20(E) of the 2010 POEA-SEC, which states that a seafarer who knowingly conceals a pre-existing illness or condition in the Pre-Employment Medical Examination (PEME) shall be liable for misrepresentation and shall be disqualified from any compensation and benefits. However, the Court interpreted “illness or condition” to refer to the underlying disease (CAD/HCVD), not medical procedures undertaken to manage that disease.

The court explained that the interpretation of labor laws should always favor the laborer. Article 4 of the Labor Code explicitly states that “all doubts in the implementation and interpretation of the provisions of the Labor Code, including its implementing rules and regulations, shall be resolved in favor of labor.” In this case, the employer already knew about Leoncio’s CAD/HCVD since 2001, when he was first medically repatriated. The stenting procedure, the Court reasoned, was merely an attempt to manage this existing condition. The employer cannot now claim ignorance or misrepresentation simply because Leoncio did not disclose the procedure during his 2014 PEME. To further emphasize the importance of such interpretation, The New Civil Code, Article 1702 states that “ all labor contracts” shall likewise be construed in favor of the laborer.

The Supreme Court distinguished this case from previous rulings like Status Maritime v. Spouses Delalamon, where a seafarer was disqualified for concealing his diabetes—a pre-existing disease, not a prior procedure or surgery. Similarly, in Vetyard Terminals & Shipping Services, Inc., v. Suarez, the seafarer misrepresented that he was merely wearing corrective lenses when he had a previous cataract operation. In both cases, the concealment pertained directly to the underlying medical condition and was not previously known to the employer.

The Court underscored the importance of construing ambiguities in favor of the laborer and highlighted that the stenting procedure aimed to improve Leoncio’s health condition. This improvement does not negate the employer’s prior knowledge of his underlying CAD/HCVD. The Court stated,

As it is, the stenting procedure undergone by Leoncio on his LAD and LCX arteries is nothing more than an attempt to discontinue the steady progression of his illness or condition—his CAD/HCVD, which was already known by his employers.

Regarding the work-relatedness of Leoncio’s condition, the Court referred to Section 32-A of the POEA-SEC, which lists cardiovascular disease as a compensable work-related condition. The Court noted that the seafarer’s duties and the harsh conditions of maritime work contributed to the acute exacerbation of his heart condition. The Court highlighted the emotional strain, varying temperatures, and harsh weather conditions faced by seafarers, supporting the conclusion that his work environment precipitated the onset of his heart condition. These cumulative factors substantiated the presumption of work-relatedness, entitling him to disability benefits. The Court therefore found that the NLRC committed grave abuse of discretion in reversing the Labor Arbiter’s decision.

FAQs

What was the key issue in this case?	The key issue was whether a seafarer’s failure to disclose a prior medical procedure (stenting) during a PEME constitutes fraudulent misrepresentation, barring disability benefits, when the employer already knew about the underlying illness.
What did the Supreme Court rule?	The Supreme Court ruled that non-disclosure of a medical procedure does not automatically disqualify a seafarer from disability benefits if the employer was aware of the underlying condition.
What is the POEA-SEC?	The POEA-SEC (Philippine Overseas Employment Administration Standard Employment Contract) is a standard employment contract that governs the employment of Filipino seafarers.
What is a PEME?	A PEME (Pre-Employment Medical Examination) is a medical examination required for seafarers before they are deployed to ensure they are fit for sea duty.
What does Section 20(E) of the POEA-SEC state?	Section 20(E) states that a seafarer who knowingly conceals a pre-existing illness or condition in the PEME is liable for misrepresentation and disqualified from compensation and benefits.
What is CAD/HCVD?	CAD/HCVD stands for Coronary Artery Disease/Hypertensive Cardio-Vascular Disease, a heart condition that Almario Leoncio had been diagnosed with prior to his last employment contract.
Why was the seafarer initially denied disability benefits?	The seafarer was initially denied benefits because he did not disclose that he had undergone a stenting procedure during his pre-employment medical examination.
What is the significance of the employer knowing about the pre-existing condition?	The employer’s prior knowledge of the pre-existing condition negates the claim of fraudulent misrepresentation based on the non-disclosure of the related medical procedure.
How does this ruling affect seafarers in the Philippines?	This ruling protects seafarers by ensuring they are not unfairly denied disability benefits based on technicalities when the employer was already aware of their underlying health condition.

This case clarifies the interpretation of concealment in the context of seafarer employment contracts, emphasizing the protection of seafarers’ rights. It sets a precedent against denying benefits based on non-disclosure of medical procedures related to known pre-existing conditions.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: ALMARIO F. LEONCIO, PETITIONER, V. MST MARINE SERVICES (PHILS.), INC., G.R. No. 230357, December 06, 2017